This should kick an error back to the user. There must be SOME trigger along the way that could generate it, even if it's just a network timeout error, right? Even a cancellable status pulser or something so you're not just throwing non-functional clicks at a button the UI suggests is functional.

MacOS 11.5.1
Illustrator 25.4.1

Steps— Open illustrator, click on a cloud doc either through recent panel or file-> open recent files